Brazil won in the cotton subsidy lawsuits

12/12/2007 12:00 - 1074 Views

The World Trade Organization (WTO) has recently issued the preliminary ruling over the cotton subsidy lawsuit against the United States, in which it is determined that US has violated the international trade laws by providing subsidies for its cotton exports to gain advantages in competition with Brazilian and other West Africa producers.

Though the lawsuit is just preliminary concluded, it is considered as important success for cotton industry of Brazil as there used to be little modification between the preliminary and final WTO ruling

WTO Dispute Settlement Board will announce the final ruling over this lawsuit by end of this September, which may allow Brazil to impose countervailing duties against US with total value of $4 billion per year.

According to Brazil’s claim, US have provided a subsidy amounted to $12.5 billion to their cotton producers from August 1999 to July 2003.

Source: VN express
Date: 29/7/2007